CYPHER/CAT A.
PRIORITY WASHINGTON
TELEGRAM NO 2715
CONFIDENTIAL.
CONFIDENTIAL
FOR COP
258
TO FOREIGN AND COMMONWEALTH OFFICE
7 OCTOBER 1969.
EUTRAL.
ADDSD TO FCO TELNO 2015 OF 7 OCTOBER REPTD FOR INFMN HONG KONG
AND SAVING TO TOKYO UKMIS GENEVA OTTAWA..
M.I.P.T. : U.S. TEXTILE IMPORTS.
FOLLOWING IS A SUGGESTED TEXT.
BEGINS:
I WOULD LIKE YOU TO KNOW MY CONCERN OVER THE SITUATION WHICH IS
DEVELOPING IN RESPECT OF TEXTILE IMPORTS INTO THE UNITED STATES. I FEAR THAT THE PROPOSALS FOR COMPREHENSIVE RESTRAINTS ON NON- COTTON TEXTILE IMPORTS WHICH THE U.S. GOVERNMENT ARE PRESSING UPON HONG KONG AND OTHER EXPORTING COUNTRIES WILL LEAD TO A
SERICUS SETBACK TO THE OBJECTIVES OF FULLER AND FREER TRADE WHICH
WE HAVE BOTH SET OURSELVES..
AS YOU KNOW, THE GENERAL AGREEMENT ON TARIFFS AND TRADE ALLOWS EMERGENCY ACTION AGAINST IMPORTS OF PARTICULAR PRODUCTS ONLY IF THESE CAUSE OR THREATEN SERIOUS INJURY TO DOMESTIC PRODUCERS. UP UNTIL NOW, I THINK IT HAS BEEN COMMON GROUND BETWEEN THE U.S. AND BRITISH GOVERNMENTS THAT THIS CONDITION IS ESSENTIAL TO PREVENT INDISCRIMINATE INTERFERENCE WITH LEGITIMATE TRADE. WE RECOGNISE THAT IMPORTS OF NON-COTTON TEXTILES INTO THE UNITED STATES ARE RISING, AS INDEED THEY ARE IN OUR OWN MARKET. BUT WE DO FIND IT VERY DIFFICULT TO SEE THAT THESE THREATEN SERIOUS
INJURY TO THE AMERICAN TEXTILE INDUSTRY AS A WHOLE FOR, WHILE IMPORTS HAVE BEEN RISING, DOMESTIC PRODUCTION, SALES, PROFITS AND EMPLOYMENT HAVE BEEN RISING AT THE SAME TIME. IN THESE CIRCUMSTANCES IT WOULD, I FEEL, BE HARD TO JUSTIFY UNDER GATT COMPREHENSIVE RESTRAINTS OF ANY KIND, EVEN THOSE ALLOWING FOR GROWTH AS YOU
/ENVISAGE.
RECEIVED IN. REGISTRY No.51
-S OCT 1969
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